BTC Price Pushes Towards $36K Ahead of 2023’s Last Approval Period for Bitcoin ETFs

BTC Price Pushes Towards $36K Ahead of 2023’s Last Approval Period for Bitcoin ETFs

BTC price is steadily climbing towards $36K just ahead of the last approval period for Bitcoin ETFs in 2023. Analysts at Bloomberg predict that there is a 90% chance for approval by January 10 if a spot bitcoin ETF is not approved during this period. The Securities and Exchange Commission (SEC) has an eight-day window starting Thursday to review and potentially approve all 12 spot bitcoin ETF applications. Comment periods for seven applicants are ending on Wednesday, and approval orders could be issued between November 9 and November 17. This marks the first approval window since Grayscale’s court victory to convert its Grayscale Bitcoin Trust (GBTC) into a spot ETF. Even if the SEC delays its decision, there is still a high likelihood of at least one spot bitcoin ETF being approved by early next year.

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BTC Price Pushes Towards $36K Ahead of 2023’s Last Approval Period for Bitcoin ETFs

The approval interest for Bitcoin (BTC) ETFs is growing as the deadline for approval approaches in January 2023. The price of BTC is currently pushing towards $36,000, indicating the market’s optimism regarding the potential approval of these ETFs.

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Background

As the cryptocurrency market continues to evolve and mature, the demand for regulated investment products such as ETFs has increased. ETFs provide investors with a convenient and regulated way to gain exposure to Bitcoin without having to directly own and store the cryptocurrency.

Overview of Bitcoin ETF Approval Process

The approval process for Bitcoin ETFs involves the U.S. Securities and Exchange Commission (SEC) reviewing and evaluating the applications submitted by various asset management firms. The SEC considers factors such as market manipulation, investor protection, and market liquidity before granting approval.

Spot Bitcoin ETFs and Approval Window

The current approval window for spot Bitcoin ETFs is relatively short, spanning over an eight-day period starting on Thursday. During this time, the SEC has the opportunity to approve all 12 applications for spot Bitcoin ETFs.

Comment Periods and Approval Orders

The comment periods for seven of the applicants are set to end on Wednesday, indicating that the SEC could issue approval orders starting Thursday, November 9th through November 17th. The first nine filings, including BlackRock, Grayscale, 21Shares & Ark, Bitwise, VanEck, Wisdomtree, Invesco & Galaxy, Fidelity, and Valkyrie, are potential candidates for approval.

However, three applicants, Hashdex, Franklin, and Global X, may have their own comment periods, which could potentially delay their approval. If the SEC decides to disregard these applications for now, there is a high probability of at least one spot Bitcoin ETF being approved by January 10th.

Chances of Approval by Jan. 10

Even if the decision is delayed during the current approval period, there is a 90% chance that at least one spot Bitcoin ETF will be approved by January 10th. This indicates a high level of confidence in the eventual approval of these investment products.

The recent court victory of Grayscale, converting its Grayscale Bitcoin Trust (GBTC) into a spot ETF, has further increased the likelihood of approval. This success has set a positive precedent for other asset management firms seeking approval for their Bitcoin ETFs.

Implications for Bitcoin Price

The approval of Bitcoin ETFs has the potential to significantly impact the price of BTC. The introduction of regulated investment products like ETFs can attract a broader range of investors, including institutional players who may have been hesitant to enter the cryptocurrency market.

This increased demand for Bitcoin could drive the price upwards as more investors seek exposure to the digital asset through ETFs. Market expectations and speculation surrounding Bitcoin ETF approval have already contributed to the upward trend in BTC’s price.

Bloomberg Analyst Perspectives

Insights from Bloomberg Intelligence analysts Eric Balchunas and James Seyffart suggest that they expect the SEC to ultimately approve all 12 spot Bitcoin ETF applications. Their analysis reinforces the notion that the chances of approval are high, even if the decision is delayed during the current approval period.

Outlook for Bitcoin ETFs in 2023

The approval of Bitcoin ETFs in 2023 is expected to lead to further growth and expansion of these investment products. As regulatory hurdles are overcome and more asset management firms enter the market, the availability and accessibility of Bitcoin ETFs are likely to increase.

This expansion could have a positive impact on market liquidity and investor access to Bitcoin. ETFs offer a convenient and familiar investment vehicle for traditional investors, potentially attracting a larger pool of capital to the cryptocurrency market.

Future of Bitcoin ETF Regulation

The SEC’s stance on Bitcoin ETFs may evolve in the future as regulatory developments continue to shape the cryptocurrency landscape. The approval of more Bitcoin ETFs and the positive market impact they have may influence the SEC’s perception and regulation of these investment products.

As the market matures and becomes more regulated, it is possible that the SEC may become more open to approving additional Bitcoin ETFs and expanding investor access to this asset class.

In conclusion, the approval interest for Bitcoin ETFs continues to grow as the deadline for approval approaches. The current approval window presents an opportunity for the SEC to approve all 12 spot Bitcoin ETF applications. The potential approval of these ETFs has implications for the price of Bitcoin, market liquidity, and investor access. Analysts and market participants are optimistic about the future of Bitcoin ETFs and their impact on the cryptocurrency market.

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